Impact of User-Generated Content on Media - UK - November 2010

This report examines the impact of user-generated content (UGC) on media, including not just traditional media such as the press but also how it has influenced the digital space in the form of comments, reviews, blogs, forums, social media and other related content.

Consumers are most likely to have been exposed to user-generated content (UGC) in the form of looking up information on Wikipedia or a similar online reference website, with 85% of adult internet users claiming to do so. Other popular forms of exposure to UGC include viewing videos (eg on YouTube) and reading comments on websites, such as under a news story or a product on a retailer’s website.

The type of UGC that people are most likely to have contributed is a comment or review on a retailer’s website, with approaching half doing so. Around two in five upload photos to a website, while approximately a third post to forums, comment on a blog or comment on news stories/features.

Consumers like the way that UGC offers the facility for a two-way conversation between them and companies and media owners, with 55% agreeing that it is a good way for companies or the media to find out what customers think. Other key aspects of UGC are that it is seen as providing an interesting alternative viewpoint to content created by professional journalists (cited by around half) and that it improves the breadth, range and quality of what consumers read, view and listen to.

A note of caution is sounded by the two in five internet users who agree that the sheer amount of UGC is overwhelming, emphasising that website owners need to ensure that the most helpful/useful comments/reviews are always to be found near the top of the list. Added to this, a sizeable minority of around one in five say that they actively avoid reading or viewing it, indicating that operators still have some work to do when it comes to credibility.

UGC is clearly influential: almost six out of ten adult internet users say they usually read reviews of products underneath their online listing, rising to around two-thirds among 16-24 year-olds. Additionally, a very attractive group to marketers - high earners with household incomes of over £50,000 a year - are notably more likely to read comments/reviews, with around two-thirds doing so.

UGC doesn’t just influence decisions, it also has a tangible effect on buying behaviour: almost half had bought something as a result of reading a review on a retailers’ website, while only slightly fewer had decided not to buy something as a result. Video reviews, while less prevalent, have also influenced around a fifth of consumers, while around 15% of adults have been influenced by a blog or Twitter feed recommendation. Again, the influence on buying behaviour is strongest among younger 16-34 year-olds and high earners.

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Table of contents

Issues in the Market

Main issues

Definition

Abbreviations

Future Opportunities

Engaging older internet users

In Wikipedia we don’t trust...

Market in Brief

UGC does influence buying behaviour

Comments most popular form of UGC

Consumption significantly higher than contribution levels

Two-way interaction main benefit of UGC

Pros v amateurs

The UGC generation

Internal Market Environment

Key points

More than two thirds have broadband

Figure 1: Broadband penetration, by demographics, 2004-10

Smartphone penetration on the rise

Email and searches most popular online activities

Figure 2: Types of activity undertaken on the internet in the last three months, April 2009-July 2010

News, photos, and video main UGC-related mobile usage occasions

Figure 3: Sites visited in the last three months using a mobile phone, April-July 2010

Auctions, attire, music, film and books top online purchases

Figure 4: Type of websites purchased from in the last three months, April-July 2010

Figure 29: Attitudes towards user-generated content, by next most popular attitudes towards user-generated content, August 2010

How Does UGC Influence Buying Behaviour and Decision-making?

Key points

Reviews count

Figure 30: How user-generated content has influenced buying behaviour and decision-making, August 2010

Men and younger people most likely to be influenced by UGC

Exposure to UGC more likely than average to influence purchase decisions

Figure 31: How user-generated content has influenced buying behaviour and decision-making, by most popular levels of exposure to user-generated content, August 2010

Contributors even more likely to be influenced

Figure 32: How user-generated content has influenced buying behaviour and decision-making, by most popular levels of contribution of user-generated content, August 2010

Figure 33: How user-generated content has influenced buying behaviour and decision-making, by next most popular levels of exposure to user-generated content, August 2010

Figure 34: How user-generated content has influenced buying behaviour and decision-making, by other most popular levels of contribution of user-generated content, August 2010

Figure 35: How user-generated content has influenced buying behaviour and decision-making, by least popular levels of contribution of user-generated content, August 2010

Positive views of UGC result in more purchasing activity

Figure 36: How user-generated content has influenced buying behaviour and decision-making, by most popular attitudes towards user-generated content, August 2010

Figure 37: How user-generated content has influenced buying behaviour and decision-making by next most popular attitudes towards user-generated content, August 2010

Video viewing benefit?

Figure 38: How user-generated content has influenced buying behaviour and decision-making, by most popular ways in which user-generated content has influenced buying behaviour and decision-making, August 2010

Figure 39: How user-generated content has influenced buying behaviour and decision-making, by next most popular ways in which user-generated content has influenced buying behaviour and decision-making, August 2010

UGC Targeting Opportunities

Key points

Figure 40: User-generated content target groups, May 2010

Embracers

Demographics

Marketing message

Reluctants

Demographics

Marketing message

Luddites

Demographics

Marketing message

Appendix – In What Ways Are People Exposed to UGC?

Figure 41: Most popular types of user-generated content exposed to (all users), by demographics, August 2010

Figure 42: Next most popular types of user-generated content exposed to (all users), by demographics, August 2010

Figure 43: Most popular types of user-generated content exposed to regularly, by demographics, August 2010

Figure 44: Next most popular types of user-generated content exposed to regularly, by demographics, August 2010

Figure 45: Most popular user-generated content exposed to occasionally, by demographics, August 2010

Figure 46: Next most popular user-generated content exposed to occasionally, by demographics, August 2010

Appendix – In What Ways Are People Contributing to UGC?

Figure 47: Most popular contribution of user-generated content (all users), by demographics, August 2010

Figure 48: Next most popular user-generated content contributed (all users), by demographics, August 2010

Figure 49: Next most popular user-generated content contributed (all users), by demographics, August 2010